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Firms in Japan Consider Launching Common Private Digital Currency

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The testing phase will see private banks in Japan fully in charge of issuing private digital currency. 

Following the recent announcement that Japan would launch its Digital Yen in around April 2021, 30 firms based in the country have sought to follow the approval of the regulatory body on digital currency to launch a separate private digital currency. The private digital currency expected to be tested in 2021 is meant to lead the evolution of digitization in the country.

Financial Technology has been in the advanced stage globally with several economic superpower countries considering the introduction of such to accelerate the much anticipated cashless world.

According to the report, the firms that engineered this idea are utility and retailers, telecommunication, brokerage, and three of Japan’s biggest banks. The group is chaired by the former Bank of Japan Executive Hiro Yamaoka. According to him, Japan has over the years seen the introduction of several digital platforms that are not big enough to overtake cash payment. In this case, they intend to come out with a platform that will be mutually compatible with the already existing ones.

The testing phase will see private banks fully in charge of issuing private digital currency.

The group clarified that there may be possibilities of other firms or entities being mandated to issue the private digital currency.

The rising adoption rate of private digital currency or payment platforms has been very impressive in Japan with three megabanks boasting of their initiatives.

Mizuho Financial Group Inc, Mitsubishi UFJ Financial Group Inc and Sumitomo Mitsui Financial Group Inc have already launched their payment platforms. Japan has been said to have a favorable atmosphere for the emergence of digital platforms since they remain incompatible as they compete. This is unlike other countries where only a few emerge as the dominant force of the financial market. Japan currently has a cashless payment of 20% out of the total Payment settlement. Though this is far below the 70% of China and 45% of the US, Japan has shown a positive response to the cashless system that is taking the country by storm in the beginning stage.

The BoJ Digital Yen and the Private Digital Currency in Japan

The private digital currency yet to be introduced by the Japanese firms may have companies and households as the potential users just like the Digital Yen. However, the Digital Yen is meant to complement the digital economy. The BoJ explained that the Central Bank Digital Currency would be issued into the system when there is a future drop in circulation.

The CBDC is currently being observed by several countries with the likes of South Korea, France, and Sweden testing it for possible use. China has currently surpassed the development phase and in the mass testing phase.

The private digital currency to be launched by the Japanese firms is expected to influence others to take the financial technology ecosystem in the country more seriously.

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Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.



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Crypto.com Lands Australian Financial Service License (AFSL)

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The Crypto.com company currently serves up to 5 million customers providing them with a powerful alternative to traditional financial services.

Payment service provider Crypto.com has secured the Australian Financial Service License (AFSL), further advancing the platform’s reach to expand its services to the Australian populace. According to a press release shared with Coinspeaker, Crypto.com secured the Australian Financial Service License following the acquisition of The Card Group Pty Ltd, a New South Wales payment firm that is licensed by the Australian Foreign Investment Review Board.

Finding favor with regulators around the world has proven to be a bit of a task for cryptocurrency-based firms around the world. With different country’s regulators having different regulations when it comes to cryptocurrencies, it is apparent that a company that thrives in one nation may experience hurdles somewhere else. The move by Crypto.com to secure the Australian Financial Service License through the acquisition of a homegrown company is one strategic move that is worth applauding.

“We are extremely proud to secure an AFSL and look forward to having a direct relationship with our Australian customers. We are committed to accelerating the world’s transition to cryptocurrency; working within the regulatory frameworks of the markets we operate in is a key pillar of achieving our mission,” said Kris Marszalek, co-founder, and Chief Executive Officer (CEO) of Crypto.com.

As the company noted, securing the AFSL will make it possible for the company to roll out its crypto-backed cards in Australia. The company also noted that the AFSL license will afford it the opportunity to have a direct relationship with the Australian regulators and the broad financial ecosystem. “Crypto.com looks forward to working with local network schemes to speed the development of new features and functionality of products and services available to Australian customers,” the company noted in the shared press release.

Crypto.com AFS License, Another Milestone Recorded

Since its establishment in 2016, Crypto.com has worked based on its simple principle that everyone has the right to manage their own finances particularly as it relates to their money, data, and identity. The firm has experienced unique milestones as it has rolled out unique products and offerings in all of its bases of operations in line with this principle and the AFS license is yet another Crypto.com milestone recorded.

The role of Crypto.com in the crypto space is vital. The company currently serves up to 5 million customers providing them with a powerful alternative to traditional financial services through the Crypto.com App, the Crypto.com Visa Card, the Crypto.com Exchange, and Crypto.com DeFi Wallet. 

With the latest entry into the Australian market, Crypto.com is billed to promulgate its solid foundation of security, privacy, and compliance.

You can read more updates from the crypto space here.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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Ripple’s XRP sees explosive 1,151% trading volume spike in November

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Month-over-month, XRP saw a 1,151% surge in trading activity in November on the eToro investment trading platform, according to the company’s latest report. This comes as XRP price rallied to $0.92 on Coinbase at its monthly peak and closing the month with a 283% gain at around $0.61.

Top 10 traded cryptoassets Source: eToro 

Spike in retail interest, trading activity

Bitcoin (BTC) was nearing $19,000 for the first time since December 2017 when large market cap altcoins like XRP started to surge in November.

XRP/USD daily chart (Coinbase). Source: TradingView.com

The optimistic market sentiment around Bitcoin likely led traders to explore higher-risk short-term trades. The result was a large surge in volume as traders rushed into altcoins.

Simon Peters, a market analyst at eToro, explained that XRP’s increase in month-on-month trading activity is entirely logical. He emphasized that trading volume typically accompanies large price moves. Peters said:

“Bitcoin has been the focal point for much of the crypto community, but altcoins are also making waves as investors look to alternative cryptoassets to diversify and make gains elsewhere. XRP’s increase in month-on-month trades is entirely logical in the context of November’s price rise. The token rose from $0.240 at the start of November to $0.661 at the end of it.”

Other likely factors include historic market trends and a spike in retail interest. In January 2018, the altcoin market saw a mania driven by retail investors. At the time, XRP and Ether (ETH) were the biggest drivers of the altcoin market’s rally.

Google search volume for “XRP.” Source: Google Trends

In fact, over the past month, the Google search term “XRP” surged to its highest levels in three years, suggesting that retail traders were returning. The most likely reasons for this include XRP breaking out of a multiyear downtrend and the perceived “cheaper” value compared to Bitcoin in the eyes of the public. 

As Cointelegraph reported, the demand for XRP also rose so quickly that Coinbase suffered a temporary server outage to the ire of its users.

Altcoins following Bitcoin’s lead in a bull market

Altcoins tend to rally and play catch-up when Bitcoin steadies during a bull market. This trend occurs because traders often look for higher-risk plays when the BTC price is consolidating.

Peters noted that Bitcoin saw an explosive price movement in November, and has seen minor, if not predictable, pullbacks. For altcoins, this is an ideal period for gains as it makes them more compelling for retail traders. Peters added:

“Bitcoin exploded in November, smashing through resistance level after resistance level, with only minor and relatively predictable retracements.

On the other hand, altcoins are always at risk of a major crash in the event of a BTC price correction. During bull markets, altcoins are likely to follow the price movement of BTC albeit with more volatility, which puts altcoins at risk of extreme short-term price swings.

Nevertheless, technical analysis shows a bright outlook for XRP, whose price is now at the highest levels in over two years. 

“The higher time frames give a clearer indication of where XRP is located in the market cycle,” trader Michael van de Poppe noted in his latest XRP price analysis. “A multiyear downtrend was broken to the upside, meaning that dips will likely be considered as entry opportunities for traders.”

With this in mind, if XRP holds $0.45 as support, continuation toward $1.00 is likely, particularly if Bitcoin price hits a new all-time high.